On 23 October 2015, Minister of Manpower of Republic of Indonesia issued Regulation No. 35 Year 2015 which is an Amendment to New Manpower Regulation No. 16 Year 2015 Regarding Procedures for Employment of Foreign Labor in Indonesia. This regulation amended some of the articles stipulated in the prior issued regulation which eases the Work Permit process to an extent. Some of the important amendments made are as follows:
- The deletion of article 3 which stipulated the quota requirement to hire expatriate by Indonesian Employees (1:10). Which means the quota requirements will be same as before which was 1:3 in previous regulations.
- Addition of Article 4A which states that a Local Limited Liability Company (PMDN) is prohibited from employing foreign workers with Job Title of Commissioner.
- Cutback of some of activities which require Temporary Work Permit on Article 16. According to new amendment only following activities require obtainment of Temporary Work permit (KITAS):
- Commercial film making which is authorized by concerned Indonesian authorities.
- conduct audits, production quality control, or inspection at the company’s branch in Indonesia for more than 1 month.
- work related to the installation of mechanical and electrical instruments, after-sales services, product market exploration etc.
- Amendment to Article 37 according to which Non resident Directors and Commissioners of Foreign Investment Companies (PMA) are not required to obtain Work Permit (IMTA) now.
- Not all but only Indonesian Domiciled Directors, Commissioners or Founders of company must obtain Work Permit (IMTA) from the date of Establishment of Company.
